We chose to drop truncated txids, because for certain protocols (such as Lightning or Coinjoin), 128-bit IDs would mean 64-bit collision-resistance due to the Meet-in-the-Middle attack. We think this is not enough, because finding a collision might allow an attacker to censor a transaction (especially dangerous in a Lightning-like protocol).
Other changes include just fixing small mistakes in the spec and making it more clear.
P.S.
Added more stuff, mainly switching to extensions instead of bisections. The motivation is in the PR.